Dubai: At a regular meeting of the board of directors of the UAE’s central bank on Wednesday, attendees were briefed on the comprehensive economic stimulus plan and its role in mitigating the financial and economic impact of the COVID-19 pandemic. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, Chairman of the Board of Directors of the UAE Central Bank, chaired the meeting.
This includes a decision to expand the Dh50 zero-cost facilities available for the use of banks and finance companies. This extension is part of the deferral program to allow for the deferral of loans from individuals and sectors affected by the effects of the pandemic until the end of 2021.
These facilities are included in the recovery program to help banks provide new loans to these customers until the end of June 2022.
Who is eligible for the scheme?
Participating banks and finance companies under the Targeted Economic Support Scheme (TESS) to provide new loans and facilities to customers negatively affected by the pandemic, within the applicable conditions established by the TESS standards published by the Central Bank on its website.
TESS facilities are available as temporary relief from principal and/or interest/profit payments on outstanding loans for all affected private sector companies, SMEs and individuals.
SMEs and private enterprises in the UAE free zones are included in the TESS, but entities registered in the UAE free zones that offer financial activities and financial banking activities are not included. The TESS does not apply to outstanding loans to government, government-related entities (GREs) and non-residents.
How can I apply?
Individuals and businesses affected by COVID-related liquidity shortages should approach their bank directly or through their relationship managers to take advantage of deferrals on their existing loans. Bankers said priority will be given to those using the facility for the first time, but those applying for a second time will also be judged on merit.
The board also approved a license to establish a bank that operates under the low-risk banking system.
The bank approved the issuance of the third and new issue of the banknote, in line with the country’s preparations for the ‘Year of 50’. The new banknote is printed according to the highest international security standards. Abdul Rahman Saleh Al Saleh, Vice Chairman of the Board, and members of the Board were in attendance.
Khaled Mohammed Al Tameemi, a veteran of financial services, has been appointed governor of the central bank.